Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Paraguay
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Inter-American Investment Corporation (IIC)
Status: U
Bank Risk Rating: FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-12-13
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Banco Bilbao Vizcaya Argentaria Paraguay S.A. (“BBVA Paraguay”)
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 27.13 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

Currency conversion note:
Bank reported PYG155.800.000.000.
Converted using 2016-11-11 exchange rate.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2017-08-30
Disclosure Date: 2016-11-11
BBVA Paraguay SME Partnership
IIC-11610-01

Project Description
The project provides credit guarantees for a loan from the Instituto de Previsión Social (IPS) to BBVA Paraguay. The focus on this partnership is to provide medium term funding to SMEs in the productive sectors. There are likely to be moderate to significant indirect environmental, social or health and safety (ESHS) and labor impacts and risks. BBVA’s portfolio is concentrated in agriculture (31.5%) and livestock (11.9%), which present risks in the form of deforestation and land-use change, particularly in the Chaco. BBVA will be required to apply the Exclusion List, National Laws, Good Practice Guides in the context of Agriculture, Livestock, and Agro-Industry on-lending, and use a satellite monitoring program for agriculture and livestock on-lending. Additionally, illegal deforestation with IIC’s use of proceeds will not be permitted. BBVA will be required to report annually, and provide monitoring reports of client activity and possible deforestation.
Investment Description
The proposed operation includes a partial credit guarantee of up to 155.8 billion Guaranies ("PYG") to be issued in favor of the Instituto de Prevision Social ("IPS"). IPS will provide a loan to BBVA Paraguay (the "Guaranteed Loan") for the guaranteed amount, the Inter-American Development Bank ("IDB") and the Inter-American Investment Corporation ("IIC") will grant a guarantee in favor of IPS covering the credit risk of BBVA Paraguay (Guarantee IDB/IIC) IPS under the Guaranteed Loan. The IPS disbursement will be made through a Trust Manager, Agencia Financiera de Desarrollo, through whom IPS will receive payments for the Guaranteed Loan. The Guaranteed Loan will have a term of up to five years, with two years of grace, and semi-annual amortization. The use of funds for the Guaranteed Loan will be to finance small and medium enterprises ("SMEs") in the productive sector of Paraguay.
Contact Information
ACCOUNTABILITY MECHANISM OF IIC The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).